IPG PhotonicsIPGP +2.31%79 ROA % is 0.26% as of Mar. 2026, which is 96% below its 10-year median of 7.42. GuruFocus rates IPGP with a GF Score™ of 79/100 and a GF Value™ of $84.97 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 1,028 Semiconductors companies, IPG Photonics ranks worse than 57.3% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. IPG Photonics's annualizedNet Income for the quarter that ended in Mar. 2026 was $6 Mil.
IPG Photonics's average Total Assets over the quarter that ended in Mar. 2026 was $2,423 Mil. Therefore, IPG Photonics's annualized ROA % for the quarter that ended in Mar. 2026 was 0.26%.
The historical rank and industry rank for IPG Photonics's ROA % or its related term are showing as below:
IPGP'
s ROA % Range Over the Past 10 Years
Min: -7.28 Med: 7.42 Max: 16.72
Current: 1.21
During the past 13 years, IPG Photonics's highest ROA % was 16.72%. The lowest was -7.28%. And the median was 7.42%.
IPGP's ROA % is ranked worse than 57.3% of 1028
companies
in the Semiconductors industry
Industry Median: 2.45
vs IPGP: 1.21
IPG Photonics (NAS:IPGP) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
IPG Photonics ROA % Related Terms
IPG Photonics ROA % Historical Data
* Premium members only.
The historical data trend for IPG Photonics's ROA % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Semiconductor Equipment & Materials subindustry, IPG Photonics's ROA %, along with its competitors' market caps and ROA % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
IPG Photonics ROA % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, IPG Photonics's ROA % distribution charts can be found below:
* The bar in red indicates where IPG Photonics's ROA % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
IPG Photonics (IPGP) has a ROA % of 0.26% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on IPG Photonics and its competitors. This is 96% below median its historical median of 7.42. According to the industry distribution chart, IPG Photonics ranks #589 out of 1028 companies in the Semiconductors industry, placing it in the top 57.3%.
Is IPG Photonics' ROA % too high?
IPG Photonics' current ROA % of 0.26% is 96% below median its 10-year median of 7.42. The Semiconductors industry median ROA % is 2.45. IPG Photonics' value of 0.26% is 89.4% below this industry median. Based on the distribution chart, IPG Photonics ranks #589 out of 1028 companies in the Semiconductors industry, which is below the industry midpoint. Overall, IPG Photonics has a GF Score™ of 79/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does IPG Photonics' ROA % compare to ACLS and KLIC?
According to the Semiconductors industry distribution chart, IPG Photonics ranks #589 out of 1028 companies for ROA %. This places IPG Photonics in the lower half of its industry. The industry median ROA % is 2.45. IPG Photonics' value of 0.26% is 89.4% below this benchmark. While the company's 10-year median is 7.42 vs. the industry median of 2.45, IPG Photonics has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROA % for a Semiconductors company?
The median ROA % among Semiconductors companies is 2.45, based on 1,028 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. IPG Photonics's current ROA % of 0.26% is 89.4% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on IPG Photonics and its competitors. For the Semiconductors industry, the median ROA % is 2.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. IPG Photonics's current ROA % is 0.26%, which is 96% below median its own 10-year median of 7.42. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is IPG Photonics stock overvalued right now?
Based on GuruFocus' analysis, IPG Photonics (IPGP) is currently considered Modestly Overvalued. The stock's GF Value™ is $84.97, compared to a current price of $110.22 — trading 29.7% above its estimated fair value. The current ROA % is 0.26%, which is 96% below median its 10-year median of 7.42 and 89.4% below the Semiconductors industry median of 2.45. IPG Photonics' overall GF Score™ is 79/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For IPG Photonics (IPGP), the current ROA % is 0.26% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is IPG Photonics (IPGP) Overvalued in 2026?
Based on GuruFocus' analysis, IPG Photonics stock appears to be overvalued.
The current stock price of $110.22 is trading 29.7% above its estimated GF Value™ of $84.97.
GuruFocus considers IPG Photonics to be Modestly Overvalued.
Key valuation signals for IPGP:
ROA %: 0.26% (96% below median its 10-year median of 7.42)
GF Value™: $84.97 vs. price of $110.22 (29.7% above fair value)
Industry Position: 89.4% below the Semiconductors median (#589 of 1028)
No single metric tells the full story. See the IPGP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
IPG Photonics Corp is a vertically integrated developer and manufacturer of high-performance fiber lasers, laser and non-laser systems, fiber amplifiers, diode lasers, and related optical components. Its products are used in diverse applications in the manufacturing, automotive, industrial, aerospace, semiconductor, and consumer end markets. The company sells its products globally to original equipment manufacturers (OEMs), system integrators, and end users. Additionally, it manufactures complementary products used with its lasers, including optical delivery cables, fiber couplers, beam switches, optical processing heads, in-line sensors, and chillers. Geographically, the company generates maximum revenue from North America, followed by China, Japan, Germany, and other markets.
79GF Score
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